Forex Trading 2018- TA/FA- Setups and discussion, page-4015

Interesting. I normally scale in the same direction as the initial trade. I don't hedge against it. I set my bias - bullish or bearish and I stick to it. If I'm wrong, I simply move on.

My current strategy has somewhat of a 'sloppy' entry - so it's always good to get in another one or two trades in at a better price.

I have strict criteria for entering a trade so opening positions in the opposite direction from my initial trade most likely won't meet those criteria. However, with the new strategy, could be something I look at.

I agree with your breakeven point. A trader should always have a plan B with the aim of getting out at breakeven. At the end of the day, trading FX is just managing risk - that's the difference between the 1% of consistently profitable traders, and the other 99% who consistently put their money into our bank accounts.

For people like me (longer-term), achieving break-even is a little harder. Because I can't always get to break even on one trade, and my strict criteria means I can't hedge in the other direction, I manage risk by moving my stop tighter and tighter as it moves in my favour. One winner, on average, can make up for approximately 5-7 losing trades and some. If I wasn't to tighten my stop, it would probably only cover 2 losers at best..

I also scale out of positions.. but that's a story for another day.